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China’s Economy Dials Back a Notch as Output and Investment Slow

China’s economy showed signs of losing steam in May, with an unexpected slowdown in factory output and lackluster investment and consumption. With a sharp deceleration in credit growth and the threat of a worsening trade dispute with the U.S., Chinese businesses face an increasingly uncertain outlook. The central bank has tried to support growth by increasing liquidity.
“Going forward, the real economy will be under even higher pressure" as investment continues to slowdown, and relations with the U.S. continue to be tense, Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis SA, wrote in a recent note.